8th Pay Commission: The Union Cabinet, chaired by Prime Minister Narendra Modi, has officially approved the formation of the 8th Pay Commission to revise salaries and allowances for central government employees and pensioners. This landmark decision impacts over 49 lakh employees and nearly 65 lakh pensioners, marking a significant step in ensuring fair compensation and benefits for public sector workers.
Key Details of the 8th Pay Commission
- The announcement was made by Union Minister Ashwini Vaishnaw following a Cabinet meeting.
- The chairman and two members of the Pay Commission will be appointed soon, and consultations will be held with central and state governments along with other stakeholders.
- Pay commissions are typically established every 10 years to review and recommend changes to the salary and pension structures of central government employees.
What is a Pay Commission?
A pay commission is constituted by the central government to:
- Revise salaries and allowances of employees.
- Adjust pension payments to account for inflation and economic conditions.
- Define a Term of Reference (ToR), which outlines the commission’s focus areas.
The previous 7th Pay Commission, set up in 2016, introduced significant changes in pay scales and pensions. Its term is expected to conclude in 2026, making way for the recommendations of the 8th Pay Commission.
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8th Pay Commission Approved: Big News for 49 Lakh Central Government Employees and 65 Lakh Pensioners
The Union Cabinet, chaired by Prime Minister Narendra Modi, has officially approved the formation of the 8th Pay Commission to revise salaries and allowances for central government employees and pensioners. This landmark decision impacts over 49 lakh employees and nearly 65 lakh pensioners, marking a significant step in ensuring fair compensation and benefits for public sector workers.
Key Details of the 8th Pay Commission
- The announcement was made by Union Minister Ashwini Vaishnaw following a Cabinet meeting.
- The chairman and two members of the Pay Commission will be appointed soon, and consultations will be held with central and state governments along with other stakeholders.
- Pay commissions are typically established every 10 years to review and recommend changes to the salary and pension structures of central government employees.
What is a Pay Commission?
A pay commission is constituted by the central government to:
- Revise salaries and allowances of employees.
- Adjust pension payments to account for inflation and economic conditions.
- Define a Term of Reference (ToR), which outlines the commission’s focus areas.
The previous 7th Pay Commission, set up in 2016, introduced significant changes in pay scales and pensions. Its term is expected to conclude in 2026, making way for the recommendations of the 8th Pay Commission.
Who is Covered Under Pay Commissions?
According to the 7th Pay Commission, the following groups fall under its purview:
- Civil services employees of the central government.
- Individuals paid from the Consolidated Fund of India (the government’s revenue account).
However, the following are excluded from pay commissions:
- Public Sector Undertakings (PSU) employees (e.g., Coal India workers).
- Employees of autonomous bodies and gramin dak sevaks.
PSU employees follow separate pay scales determined by their specific organizations.
Key Highlights of the 7th Pay Commission
- Fitment Factor:
- Employee unions demanded a 3.68 fitment factor, but the government approved a 2.57 fitment factor instead.
- This fitment factor is used as a multiplier to calculate revised salaries and pensions.
- Revised Salaries and Pensions:
- Minimum basic pay increased from ₹7,000 (6th Pay Commission) to ₹18,000 per month.
- Minimum pension rose from ₹3,500 to ₹9,000 per month.
- Maximum salary was set at ₹2,50,000 per month, and maximum pension at ₹1,25,000 per month.
What’s Next for the 8th Pay Commission?
The 8th Pay Commission is expected to bring significant changes to salaries and pensions, benefiting lakhs of central government employees and pensioners. With the appointment of its members and consultations in progress, stakeholders eagerly await details about the fitment factor and other revisions.
Stay tuned for updates on how the 8th Pay Commission will redefine the financial landscape for central government employees and pensioners!